Installment note; amortization schedule [LO14-3]
American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2021. In payment for the $5.3 million machine, American Food Services issued a four-year installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 10%.
Required:
1. Prepare the journal entry for American Food Services' purchase of the machine on January 1, 2018.
2. Prepare an amortization schedule for the four-year term of the installment note.
3. Prepare the journal entry for the first installment payment on December 31, 2018.
4. Prepare the journal entry for the third installment payment on December 31, 2020.
5. Prepare an amortization schedule for the four-year term of the installment note.
Answers
Answer:
Annuity to be paid:
5,300,000 = Annuity * Present value interest factor of annuity, 10%, 4 years
5,300,000 = Annuity * 3.16986
Annuity = 5,300,000 / 3.16986
= $1,671,995.4950
= $1,671,995
1.
Date Account Title Debit Credit
Jan 1 , 2021 Right of Use Asset $5,300,000
Lease Payable $5,300,000
3.
Date Account Title Debit Credit
Dec 31 , 2021 Interest expense $530,000
Lease Payable $1,141,995
Cash $1,671,995
4.
Date Account Title Debit Credit
Dec 31 , 2023 Interest expense $290,181
Lease Payable $1,381,814
Cash $1,671,995
Question 2 is attached.
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Related Questions
A company's income statement showed the following: net income, $131,000; depreciation expense, $38,500; and gain on sale of plant assets, $12,500. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $11,100; merchandise inventory increased $26,500; prepaid expenses increased $7,900; accounts payable increased $5,100. Calculate the net cash provided or used by operating activities. Multiple Choice $138,800. $152,600. $154,600. $180,600. $159,400.
Answers
A company retires its bonds at 105. The face value is $100,000 and the carrying value of the bonds at the retirement date is $103,745. The issuer's journal entry to record the retirement will include a: Group of answer choices Credit to Premium on Bonds. Credit to Bonds Payable. Debit to Premium on Bonds. Credit to Gain on Bond Retirement. Debit to Discount on Bonds.
Answers
Answer: Debit to Premium on Bonds.
Explanation:
Face value of bond = $100000
Carrying value of bond = $103745
The issuer's journal entry to record the retirement will include a Debit to Premium on Bonds which will be in the value of ($103745 - $100000) = $3745.
the aicpa code of professional conduct includes which sections
Answers
Answer:
The Code of Professional Conduct of the American Institute of Certified Public Accountants consists of two sections--(1) the Principles and (2) the Rules. The Principles provide the framework for the Rules, which govern the performance of professional services by members.
Explanation:
The four parts of the AICPA Code of Professional Conduct are principles, rules of conduct, interpretations of the rules of conduct and ethical rulings.
The three categories of members under the Code of Professional Conduct are 1) members in public practice; 2) members in business; and 3) other members.
LOL :)
The following information should be considered:
The Code of Professional Conduct of the American Institute of Certified Public Accountants consists of two sections:
The Principles And the Rules. The Principles provide the framework for the Rules, which govern the performance of professional services by members. The four parts of the AICPA Code of Professional Conduct are principles, rules of conduct, interpretations of the rules of conduct and ethical rulings. The three categories of members under the Code of Professional Conduct are members in public practice; members in businessother members.
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36) All of the following are true of the number of days' sales uncollected ratio except: A) Can be used for comparisons between current and prior periods. B) Reflects the liquidity of receivables. C) Is most effective in evaluating the cash sales of a company. D) Measures how much time is likely to pass before the current amount of accounts receivable is received in cash. E) Can be used for comparisons to other companies in the same industry.
Answers
Answer:
C) Is most effective in evaluating the cash sales of a company.
Explanation:
A number of days' sales uncollected ratio can be defined as a liquidity ratio that is typically used by investors and creditors to determine or ascertain the number of days left to obtain all account receivable. Thus, it measures the amount of days left for a debtor to pay a credit.
All of the following are true of the number of days' sales uncollected ratio;
I. Can be used for comparisons between current and prior periods.
II. Reflects the liquidity of receivables.
III. Measures how much time is likely to pass before the current amount of accounts receivable is received in cash.
IV. Can be used for comparisons to other companies in the same industry.
Please match each of the following terms to the description of best fit.
a. Risk associated with price fluctuations caused by interest rate changes B.
b. This is the risk that a firm's cost of debt will fall and as a result reinvested coupon payments will earn less yield moving forward.
c. Risk that the Borrower will not make payments on time or in full D.
d. Coupon Payments typically follow a benchmark market rate E.
e. All of the yield is determined by the difference in the price of the bond and the par value F.
f. Can be assessed using the perpetuity formula
1. Interest Rate Risk
2. Reinvestment Risk
3. Default Risk
4. Floating rate bond
5. Zero Coupon Bond
6. Consol Bond
Answers
Answer:
1. Interest Rate Risk ⇒ Risk associated with price fluctuations caused by interest rate changes.
2. Reinvestment Risk ⇒ This is the risk that a firm's cost of debt will fall and as a result reinvested coupon payments will earn less yield moving forward.
3. Default Risk ⇒ Risk that the Borrower will not make payments on time or in full.
4. Floating rate bond ⇒ Coupon Payments typically follow a benchmark market rate.
5. Zero Coupon Bond ⇒ All of the yield is determined by the difference in the price of the bond and the par value.
6. Consol Bond ⇒ Can be assessed using the perpetuity formula.
An international trade summit is held in Geneva, Switzerland. The purpose of the summit is to cooperatively develop policies that promote international trade. Representatives from 50 different countries attend the summit. One of the attendees represents a leading nation in the international services trade. This attendee is most likely from which of the following countries?
a. New Zealand
b. Germany
c. Kenya
d. Saudi Arabia
Answers
Answer:
b. Germany
Explanation:
The international business summit held at Geneva was for the cooperation and development of trade policies. About 50 representatives from various nations were involved. Most of the members were from Germany. The summit discussed many trade issues and various national security policies for protection and growth of the business.Harvey Hotels has provided a defined benefit pension plan for its employees for several years. At the end of the most recent year, the following information was available with regard to the plan: service cost: $6.4 million, expected return on plan assets: $1.4 million, actual return on plan assets: $1.2 million, interest cost: $1.6 million, payments to retired employees: $2.2 million, and amortization of prior service cost (created when the pension plan was amended causing a drop in the projected benefit obligation): $1.3 million. What amount should Harvey Hotels report as pension expense in its income statement for the year
Answers
Answer:
$7.9 million
Explanation:
Calculation to determine What amount should Harvey Hotels report as pension expense in its income statement for the year
Service cost $6.4 million
Interest cost $1.6million
Expected return on plan assets($1.4million)
Amortization of prior service cost $1.3million
Pension expense $7.9million
Therefore The amount that Harvey Hotels Should report as pension expense in its income statement for the year is $7.9million
Find the sum of the series 2 + 5 + 8 + ... + 182
Answers
Answer:
first term(a)=2
common diff.(d)=5-2=3
lqst term(l)=182
sum of terms (sn)=?
Explanation:
we have,
l=a+(n-1)d
182=2+(n-1)×3
182-2=3n-3
180=3n-3
180-3=3n
177=3n
177÷3=n
59=n
n=59
i hope this solve help you
On January 1, 2020, Castaway Corp. issued 5,000 shares of preferred stock ($15 par value) at $45 per share. Each share of preferred stock is redeemable at the option of the stockholder at $45 per share. On September 1, 2020, preferred shareholders holding 1,000 shares of preferred stock redeemed their stock.
The entry recorded by Castaway Corp. on September 1, 2020, would include the following:
A. No net change to stockholdersâ equity.
B. A decrease to retained earnings for $5,000.
C. A decrease to assets for $45,000.
D. No net change to preferred stock outstanding.
Answers
Answer: C. A decrease to assets for $45,000.
Explanation:
When shareholders redeem their stock, the company pays them for the redeemed stock at a certain price which in this case is $45.
The total cost of redemption is therefore:
= 45 * 1,000
= $45,000
The company uses cash to pay for this which is an asset. Assets will therefore reduce by $45,000 which is the amount of cash paid.
the path a product takes from product to final user is called what?
Answers
Answer:
distribution channel
Explanation:
A marketing channel consists of the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption. It is the way products get to the end-user, the consumer; and is also known as a distribution channel.
Your employer, Pointer Media Group of Columbus, Ohio, has had an excellent year, and the CEO, Jeremy Pointer, would like to reward the troops for their hard work with a rustic yet plush winter retreat. The CEO wants his company to host a four-day combination conference/retreat/vacation for his 55 marketing and media professionals with their spouses or significant others at some spectacular winter resort.
One of the choices is Vail, Colorado, a famous ski resort town with steep slopes and dramatic mountain views. As you investigate the options in Vail, you are captivated by the Four Seasons Resort and Residences Vail, a five-star property with an outdoor pool, indoor and outdoor hot tubs, ski-in/ski-out access, a ski concierge, two acclaimed gourmet restaurants, and an amply equipped gym and fitness center. Other amenities include an on-site spa with massage and treatment rooms, a sauna, and facial and body treatments. Bathrooms feature separate bathtubs and showers, double sinks, and bathrobes. For business travelers, the hotel offers complimentary wired high-speed Internet access, complimentary wireless Internet access, and multiline phones as well as the use of two desktop computers.
The website of the Four Seasons Resort and Residences Vail is not very explicit on the subject of business and event facilities, so you decide to jot down a few key questions. You estimate that your company will require about 50 rooms. You will also need two conference rooms (to A/V equipment in the conference rooms, Internet access, and entertainment options for families. You have two periods that would possible: December 16-20 or January 13-17, You realize that both are peak times, but you wonder whether you can get a discounted accommodate 25 participants or more) for one and a half days. You want to know about room rates, conference facilities, You are interested in entertainment in Vail, and in tours to the nearby national parks. Eagle County Airport is 36 miles away rou and you would like to know whether the hotel operates a shuttle. Also, one evening the CEO will want to host a banquet for about 85 people. Mr. Pointer wants a report from you by September 13.
Your Task: Write a well-organized direct request letter or e-mail to Kiersten Dunn, Sales Manager, Four Seasons Resort and Resi dences Vail, One Vail Road, Vail, Co 81657.
Answers
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
28 February, 2021
Kiersten Dunn,
Sales Manager,
Four Seasons Resort and Residence Vail,
One Vail Road, Vail,
Co 81657
Subject: Information on 50 rooms and two conference halls that are required for a four-day official retreat.
Dear Kierstenn,
Our Columbus, Ohio-based business, Pointer Media Group, is planning an official retreat in Vail. We liked your property a lot and think it's a good match for our needs. We're looking for dates between December 16 and 20, 2018 and January 13 and 17, 2018. Please share your availability based on our requirements so that we can schedule the retreat.
The retreat will last for four days. There will be some official conference meetings followed by enjoyable activities at the retreat.
Kindly mention the details about your resort as follows:
Availability of 50 rooms and 2 conference halls on the designated date:
Seating capacity of the conference halls:
Room rates and packages offered:
Services offered:
Availability of A/V equipment in conference room:
Access to Internet:
Availability of DVD player/recreation facilities:
Mode of payment accepted:
Toiletries provided:
Corporate discount offered, if any:
We eagerly await your prompt response on this matter. If you need any additional details, please contact us.
Sincerely,
Lily Sethi
HR, Pointer Media Group
An equivalent unit is calculated by: Multiple Choice dividing the number of physical units by the percentage of completion. dividing the number of physical units into direct materials and conversion costs. subtracting the number of physical units in ending Work in Process Inventory from the total number of physical units. multiplying the number of physical units by the percentage of completion.
Answers
Answer:
multiplying the number of physical units by the percentage of completion.
Explanation:
Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service. Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.
The fundamentals of Project Management includes;
1. Project initiation
2. Project planning
3. Project execution
4. Monitoring and controlling of the project
5. Adapting and closure of project.
It is very important and essential that project managers in various organizations, businesses and professions adopt the aforementioned fundamentals in order to successfully achieve their aim, objectives and goals set for a project.
An equivalent unit is calculated by multiplying the number of physical units by the percentage of completion.
Basic Assumptions, Principles, and Terminology in the Conceptual Framework For each description, select the correct key term. Description Term
a. Refers to whether or not a particular amount is large enough to affect a decision. Answer Verifiability
b. The activities of a business are considered to be independent and distinct from those of its owners or from other companies. Answer
c. Accounting information should enable users to identify similarities and differences between sets of economic phenomena. Answer
d. Financial reporting information must be available to decision makers before it loses its capacity to influence decisions. Answer
e. Information is useful if it has the ability to influence decisions. Answer
f. Consensus among measures assures that the information is free of error. Answer
g. Accounting information should reflect the underlying economic events that it purports to measure. Answer
h. The financial reports are presented in one consistent monetary unit, such as U.S. dollars. Answer
i. A business is expected to have continuity in that it is expected to continue to operate indefinitely. Answer
j. The life of a business can be divided into discrete accounting periods such as a year or quarter. Answer
Answers
Answer:
a. Refers to whether or not a particular amount is large enough to affect a decision
Answer: Verifiability
b. The activities of a business are considered to be independent and distinct from those of its owners or from other companies. Answer
Answer: Reporting entity concept / Business entity concept
c. Accounting information should enable users to identify similarities and differences between sets of economic phenomena. Answer
Answer: Comparability (quality of information)
d. Financial reporting information must be available to decision makers before it loses its capacity to influence decisions.
Answer: Timeliness
e. Information is useful if it has the ability to influence decisions. Answer
Answer: Relevance
f. Consensus among measures assures that the information is free of error. Answer
Answer: Verifiability
g. Accounting information should reflect the underlying economic events that it purports to measure.
Answer: Representational Faithfulness
h. The financial reports are presented in one consistent monetary unit, such as U.S. dollars.
Answer: Measuring Unit
i. A business is expected to have continuity in that it is expected to continue to operate indefinitely. Answer
Answer: Going Concern
j. The life of a business can be divided into discrete accounting periods such as a year or quarter.
Answer: Accounting Period
Information concerning a product produced by Ender Company appears here: Sales price per unit $ 164 Variable cost per unit $ 94 Total annual fixed manufacturing and operating costs $ 434,000 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $182,000. Determine the margin of safety in units, sales dollars, and as a percentage.
Answers
Answer:
Results are below.
Explanation:
To calculate the unitary contribution margin, we need to use the following formula:
Contribution margin= selling price - unitary variable cost
Contribution margin= 164 - 94
Contribution margin= $70
Now, to determine the break-even point in units and sales dollars, we need to use the following formulas:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 434,000 / 70
Break-even point in units= 6,200
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 434,000 / (70 / 164)
Break-even point (dollars)= $1,016,800
The desired profit is $182,000:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (434,000 + 182,000) / 70
Break-even point in units= 8,800
Finally, the margin of safety in units, sales dollars, and as a percentage:
Margin of safety (units)= (current sales level - break-even point)
Margin of safety (units)= 8,800 - 6,200
Margin of safety (units)= 2,600
Margin of safety (dollars)= (8,800*164) - 1,016,800
Margin of safety (dollars)= $426,400
Margin of safety ratio= (current sales level - break-even point)/current sales level
Margin of safety ratio= 426,400 / 1,443,200
Margin of safety ratio= 0.295
A combination of high crude oil prices and government subsidies for ethanol have led to a sharp increase in the demand for corn in recent years. How will this increase in demand for corn influence (a) the price of corn; (b) the quantity of corn supplied; (c) the cost of producing soybeans and wheat, crops that are often produced on land suitable for production of corn; (d) the price of cereals, tortillas, and other products produced from corn; and (e) the price of beef, chicken, and pork, meats produced from animals that are generally fed large quantities of corn
Answers
Answer:
a) Increase
b) Increase
c) Increase
d) Increase
e) Increase
Explanation:
a) The price of corn
The increase in the demand for corn will cause an increase in the price of corn
b) The quantity of corn supplied
The quantity of corn supplied will increase rapidly in the short run before equilibrium will be established in the market
c) The cost of producing soybeans and wheat crops will Increase due to the High demand for corn hence the supply will decrease as well
d) The price of cereals and other products produced from corn will Increase as well
e) The price of beef and other meat gotten from animals that fed on Corn will Increase as well because the cost of their feed will increase
A buyer purchased a house from a seller. It turned out that the concrete used to pour the foundation had been improperly mixed and the foundation was crumbling. The buyer discovered that the cost of repairing the defective foundation would be over $10,000. She filed suit against the seller for the cost of repairs. If the court rules in the buyer's favor, what is the likely reason
Answers
Answer:
The court will decide based on the structure report of the house. If it is found in the report that the foundation had been improperly mixed the repair cost can be recovered from the seller.
Explanation:
It is responsibility of a seller to clearly inform buyer about any defects in the item which is been sold. The seller did not disclosed that the foundation had been improperly mixed so he is responsible for any repair cost that is incurred to fix his fault.
A Korean steel company produces steel in the United States, with some of its steel being exported to other nations and some of it being sold within the United States. If the prices of this steel increase, then a. the GDP deflator and the CPI will both increase. b. the GDP deflator will increase and the CPI will be unchanged. c. the GDP deflator will be unchanged and the CPI will increase. d. the GDP deflator and the CPI will both be unchanged.
Answers
Answer:
a
Explanation:
A company produces a product with variable costs of $2.50 per unit. The product sells for $5.00 per unit. The company has fixed costs of $3,000 and desires a target income of $10,000. The sales level in dollars to achieve the desired target income is $ .
Answers
Answer:Break-even point (dollars)= $26,000
Explanation:
Answer:
3000 esta es la respuesta
Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral arrangements and floral delivery. It takes Anita 30 minutes to finish one floral arrangement and 40 minutes to make a delivery. It takes Jerome 10 minutes to finish one floral arrangement and 30 minutes to make a delivery. Each worker works six hours per day.
Required:
Suppose that, initially, both Jerome and Anita spend four hours each day doing floral arrangements and two hours each day doing deliveries. Now suppose they change their tasks, so that each individual does nothing but the task in which she or he has a comparative advantage. How many more floral arrangements and deliveries could they produce each day?
Answers
Answer:
4 more floral arrangements, 2 more deliveries - with Jerome & Anita specialisation in comparative advantage (arrangements & deliveries) resp.
Explanation:
Time available = 6 hours, each worker, per day
Arrangement Delivery
Anita 30 mints (2 per hr) 40 mints (1.5 per hr)
Jerome 10 mints (6 per hr) 30 mints (2 per hr)
Jerome is comparatively more (by higher extent) productive in arrangement than Anita, relative to in case of packing. Jerome has comparative advantage in arrangement, Anita has comparative advantage in delivery.
Production before, each 4 hrs arrangement & 2 hrs delivery
Jerome = (6 x 4)A + (2 x 2)D = {24A, 4D} . Anita = (2 x 4)A + (2 x 1.5)D = {8A, 3D} Total = {32A, 7D}Production after Jerome specialisation in arrangement, Anita in packing
Jerome = 6 x 6 = 36A , Anita = 1.5 x 6 = 9DSo, increase in production = {4A, 2D}Wildhorse Company expects to have a cash balance of $124,200 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022.
1. Collections from customers: January $191,700, February $394,200.
2. Payments to suppliers: January $108,000, February $202,500.
3. Wages: January $81,000, February $108,000. Wages are paid in the month they are incurred.
4. Administrative expenses: January $56,700, February $64,800. These costs include depreciation of $2,700 per month. All other costs are paid as incurred.
5. Selling expenses: January $40,500, February $54,000. These costs are exclusive of depreciation. They are paid as incurred.
6. Sales of short-term investments in January are expected to realize $32,400 in cash. Wildhorse Company has a line of credit at a local bank that enables it to borrow up to $67,500. The company wants to maintain a minimum monthly cash balance of $54,000.
Answers
Answer:
Answer is explained in the explanation section below.
Explanation:
We need to set up a cash budget for the Wildhorse Company in their first two months of the year 2022.
Company = Wildhorse
For the Two Months Ending February 2022
So, below is the Cash Budget:
January February
Beginning of Cash balance $124,200 $67500
Add: Receipts
Sale of Short Term Investments $32400 -
Collection from Customers $191700 $394200
Total Receipts $224100 $394200
Total Available Cash $348300 $461700
Less: Disbursements:
Wages $81000 $108000
Administrative Expenses $51300 $62100
($54000-$2700Dep.) ($64800-$2700Dep.)
Selling Expenses $40500 $54000
Payments to Suppliers $108000 $202500
Total Disbursements $280800 $426600
Excess or (Deficit) of Avble Cash $67500 $35100
Financing:
Add: Borrowings - $18900
Less: Repayments - -
Ending Cash Balance $67500 $54000
Explanation: As cash availability in February is only $ 35100, the company will borrow $18900 to maintain a minimum balance of $30,000.
Borrowing in February = Minimum Balance - Available Cash
Borrowing in February = $54000-$35100
Borrowing in February = $18900
Park Corporation is planning to issue bonds with a face value of $3,100,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 6.0 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
1. Prepare the journal entry to record the issuance of the bonds.
2. Prepare the journal entry to record the interest payment on June 30 of this year. What bonds payable amount will Park report on its June 30 balance sheet?.
Answers
Answer:
PV of bonds:
PV of face value = $3,100,000 / (1 + 3%)²⁰ = $1,716,395
PV of coupon payments = $108,500 x 14.877 (PVIFA, 3%, 20 periods) = $1,614,155
market price = $3,330,550
1) January 1, year 1
Dr Cash 3,330,550
Cr Bonds payable 3,000,000
Cr Premium on bonds payable 330,550
2) June 30, year 1
Dr Interest expense 99,916
Dr Premium on bonds payable 8,584
Cr Cash 108,500
amortization of bond premium = ($3,330,550 x 6%) - $108,500 = -$8,584
The net income reported on the income statement for the current year was $315,153. Depreciation recorded on fixed assets and amortization of patents for the year were $32,591 and $11,136, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $42,620 $55,973 Accounts Receivable 128,573 109,672 Inventories 112,117 87,792 Prepaid Expenses 4,229 6,883 Accounts Payable (merchandise creditors) 51,294 73,397 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method
Answers
Answer:
$296,205
Explanation:
Cash flows from operating activities
Net income $315,153
Add Depreciation expense $32,591
Add Amortization expense $11,136
Increase in Accounts Receivable ($18,901)
Increase in Inventories ($24,325)
Decrease in Prepaid Expenses $2,654
Decrease in Accounts Payable ($22,103)
Net Cash from Operating Activities $296,205
Therefore,
the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method is $296,205.
A privately owned summer camp for youngsters has the following data for a 12-week session: Charge per camper Fixed costs Variable cost per camper Capacity $480 per week $192,000 per session $320 per week 200campers (a) Develop the mathematical relationships for total cost and total revenue. (b) What is the total number of campers that will allow the camp to just break even
Answers
Answer:
Results are below.
Explanation:
Giving the following information:
Fixed costs= $192,000
Unitary variable cost= $320 per week
Selling price per unit= $480 per week
To calculate the total cost, we need to use the following formula:
Total cost= fixed costs + unitary variable cost*number of units
Total cost= 192,000 + 320*number of weeks
Now, the total revenue:
Total revenue= selling price per week*Number of weeks
Total revenue= 480*x
Finally, the break-even point in units:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 192,000 / (480 - 320)
Break-even point in units= 1,200 campers
"Coffee Klatch is an espresso stand in a downton office building. The average selling price of a cup of coffee is $1.49 and the avergage variable expense per cup is $0.36. The avergage fixed expense per month is $1,300. How many cups of coffee would have to be sold to attain target profits of $2,500 per month?"
Answers
Answer:
3363 cups of coffee
Explanation:
Given that the average selling price of a cup of coffee is $1.49 and the avergage variable expense per cup is $0.36 and average fixed expense per month is $1,300
The target profit is the difference between the total selling price and the total cost.
Let the number of units to be sold to make a target profits of $2,500 be T
The total cost will be
= 0.36T + 1300
The total sales
= 1.49T
Hence
1.49T - 0.36T - 1300 = 2500
1.13T = 2500 + 1300
1.13T = 3800
T = 3800/1.13
= 3362.83
Hence the company must sell about 3363 cups of coffee to make the target profit
If a clothing manufacturer purchased a computerized sewing machine from an American company, then consumer spending and GDP both increase. investment and GDP both increase. consumer spending increases and GDP decreases. investment increases and GDP decreases. consumer spending and investment both increase.
Answers
Answer:
Investment and GDP both increase.
Explanation:
GDP(Gross Domestic Product)can be regarded as the overall value of goods/services that is been manufactured arround geographic boundaries of a particular country at a particular period of time ( year). It gives indication of economics performance. Invest can be regarded as item/asste gotten with hope of giving income to the owner. Hence, from the question, If a clothing manufacturer purchased a computerized sewing machine from an American company, then Investment and GDP both increase.
Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $3.00 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a return of 15.80 percent on your equity investments
Answers
Answer:
You are willing to pay $18.99 for one share of this stock.
Explanation:
This can be calculated using the following formula:
P = d / r .............................. (1)
Where;
P = price per share = ?
d = annual dividend per share = $3.00
r = equity investments return = 15.80%, or 0.1580
Substituting the values into equation (1), we have:
P = $3.00 / 0.1580
P = $18.99
Therefore, you willing to pay $18.99 for one share of this stock.
When adjusting accrual earnings to obtain cash flows from operations, A. an increase in Accounts Payable is added to determine cash flow from operations. B. it is not necessary to consider any changes to Accounts Payable. C. an increase in Accounts Payable is deducted to determine cash flows from operations. D. a decrease in Accounts Payable is added to determine cash flow from operations.
Answers
Answer: A. an increase in Accounts Payable is added to determine cash flow from operations.
Explanation:
We should note that accounts payable refer to the amounts that the company pays to its suppliers, therefore the sum of the the total amount that's owed to the suppliers will be shown on the balance sheet of the company as accounts payable.
Therefore, when adjusting accrual earnings to obtain cash flows from operations, an increase in accounts payable is added to determine cash flow from operations.
credit economical definition.
Answers
Answer:
The credit definition in economics is any agreement where one party borrows money from a second party with the promise to pay the amount back with interest. Credit ranges from consumer loans and credit cards to corporate bonds. I hope it helps. : )
Explanation:
The economical definition of credit is the allowance of one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources at a later date.
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Match the cause for the negatively sloped aggregate demand curve with the correct term.
1. As prices rise, the cost for businesses to finance new equipment increases, causing a drop in quantity demanded of real GDP.
2. The purchasing power of money held in savings accounts falls as prices rise.
3. As prices rise in the United States, foreigners purchase fewer U.S. goods.
OPTIONS:
a. The Aggregate Demand Effect
b. The Wealth Effect
c. The Interest Rate Effect
d. The Export Effect
Answers
Answer:
1. C
2. B
3. D
Explanation:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.
Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).
The various factors that have an effect on the GDP of a country's economy are;
1. The Interest Rate Effect: As prices rise, the cost for businesses to finance new equipment increases, causing a drop in quantity demanded of real GDP.
2. The Wealth Effect: The purchasing power of money held in savings accounts falls as prices rise.
3. The Export Effect: As prices rise in the United States, foreigners purchase fewer U.S. goods.
The differences in Beal Inc.’s balance sheet accounts at December 31, 2006 and 2005, are presented below.
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Increase (Decrease)
Assets
Cash and cash equivalents $ 120,000
Available-for-sale securities 300,000
Accounts receivable, net --
Inventory 80,000
Long-term investments (100,000)
Plant assets 700,000
Accumulated depreciation --
$1,100,000
Liabilities and Stockholders’ Equity
Accounts payable and accrued liabilities $ (5,000)
Dividends payable 160,000
Short-term bank debt 325,000
Long-term debt 110,000
Common stock, $10 par 100,000
Additional paid-in capital 120,000
Retained earnings 290,000
$1,100,000
The following additional information relates to 2006:
a. Net income was $790,000.
b. Cash dividends of $500,000 were declared.
c. Building costing $600,000 and having a carrying amount of $350,000 was sold for $350,000.
d. Equipment costing $110,000 was acquired through issuance of long-term debt.
e. A long-term investment was sold for $135,000. There were no other transactions affecting long-term investments.
f. 10,000 shares of common stock were issued for $22 a share.
In Beal’s 2006 statement of cash flows,
1. Net cash provided by operating activities was
a. $1,160,000
b. $1,040,000
c. $ 920,000
d. $ 705,000
2. Net cash used in investing activities was
a. $1,005,000
b. $1,190,000
c. $1,275,000
d. $1,600,000
3. Net cash provided by financing activities was
a. $ 20,000
b. $ 45,000
c. $150,000
d. $205,000
Answers
Answer:
Part 1
Cash Provided by Operating Activities is $705,000
Part 2
Cash Used by Investing Activities is $405,000
Part 3
Cash Provided by Financing Activities is $205,000
Explanation:
Cash flow from Operating Activities
Net income $790,000
Adjustment for changes in working capital items :
Increase in Inventories ($80,000)
Decrease in Accounts Payable ($5,000)
Net Cash Provided by Operating Activities $705,000
Cash flow from Investing Activities
Proceeds From Sale of Building $350,000
Proceeds From Sale of long-term investments $135,000
Purchase of Available-for-sale securities ($300,000)
Purchase of Plant assets ($590,000)
Net Cash Used by Investing Activities ($405,000)
Cash flow from Financing Activities
Dividends Paid $500,000 - $160,000 ($340,000)
Increase in Short-term bank debt $325,000
Issue of Common Stock $220,000
Net Cash Provided by Financing Activities $205,000